Pinnacle Pipeline Company

ORIGINAL VOLUME NO. 1

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Effective Date: 10/08/2003, Docket: RP04-102-001, Status: Effective

Original Sheet No. 128 Original Sheet No. 128 : Effective

the pipeline facilities. Transporter will

provide updated information concerning the need

for the OFO and will issue a notice informing

Shipper(s) when any OFO in effect will be

canceled.

13. NEGOTIATED RATES

13.1 Notwithstanding anything to the contrary

contained in this Tariff, Transporter and Shipper

may negotiate a rate for service under any Rate

Schedule contained in this Tariff. Transporter's

maximum Rate Schedule FT rate as shown on Sheet

No. 6, Transporter's Statement of Rates and

Charges ("Recourse Rate") is available for any

Shipper that does not desire to negotiate a rate

with Transporter.

13.2 A Negotiated Rate shall mean a rate for service,

which may be less than, equal to or greater than

Transporter's maximum Reservation Charge, if

applicable, or Commodity Charge, as stated on

Transporter's Statement of Rates and Charges for

that service, shall not be less than the minimum

rate, may be based on a rate design other than

Straight Fixed Variable ("SFV"), and may include

a minimum quantity. With respect to a Negotiated

Rate which, when calculated on a 100% load factor

basis, exceeds Transporter's maximum allocation

of receipts and deliveries pursuant to Section 7,

Shippers who have agreed to pay said Negotiated

Rate would be considered to have paid the maximum

Recourse Rate. For purposes of exercising rights

to continue service pursuant to Section 22, the

highest rate that a Shipper must match if it

desires to retain all or a portion of its

capacity and continue to receive firm service

under the same Rate Schedule beyond the

expiration date of such Firm Transportation

Agreement is the maximum rate applicable to such

service.

13.3 On or before the date service commences,

Transporter will submit to the Commission Tariff

Sheet No. 201 stating the exact legal name of the

Shipper, the negotiated rate, the rate schedule,

the Receipt Point, Delivery Point(s) and TQ.

Unless Transporter executes and files a non-